Will We Make Enough Money To Afford A House

I don't have enough money to buy a house. How can I buy a house with limited money?

If you want to buy a house right now, having limited money, try:Owner financing: Find a property and have the seller act as the bank. You’d make your payment directly to him/her. To do this, you’d have to negotiate a very low or no down payment. One way to handle that is to build the down payment into your first 12 or 24 payments.Subject-To: This technique is used more often by investors, but it’d work for you. If the seller has a mortgage that would be affordable to you, the seller deeds the house to you. You, in turn, make the seller’s mortgage payments. This works best for someone who has fallen behind, or is in danger of falling behind, on their payments.FHA Loan: FHA loans only require 3.5% down. Further, the seller is allowed to contribute a portion of his/her proceeds to your closing costs. You might also get a second mortgage from your agent to pay for anything else. It’d be a second mortgage, secured by the property.If you want to quickly accumulate some money, try:Wholesaling. Find a property at a “below market” price. Put it under contract. Then assign/sell the contract to an investor for more. Example: A property that, nicely fixed up, would sell for $550,000. You can put it under contract for $305,000. You assign the contract to an investor for $25,000. So the seller gets his $305,000, the investor pays $330,000 for a house that will be worth $550,000, and you make $25,000.There are plenty of other ways, too. But try those for starters.

Is making $1.2M a year enough to afford a $10M house?

No. Not at all. Beyond any mortgage calculations no normal lender writes notes on a $10MM house anywhere close to how they write one even for a normal jumbo mortgage. It's not about pre or post tax income coverage and walking into Wells Fargo's normal mortgage department, or even their kind of special mortgage group. You get those types of loans when you're a client of a true private bank. Not their private client group but something like JPM’s Private Bank, which the last I heard had a minimum net worth of $50MM, a decent amount of which had to be somewhat liquid. At least that's what an extended member of my family who worked there told me about five years ago.You can't just get a lender to write paper on something like that unless you have significant assets with that institution already. A $10MM house isn't fungible if you default: it can take a long time to unload one even in the wealthiest of markets so no lender wants to own one unless the asset is collateralized with other assets.Outside of that awesomeness, it's a bad move to buy a $10MM house with that income. Unless you had a penti-millionaire dollar score before don't do it . Early in my career I made the type of money to buy shit like that and I luckily found that it was an asshole buy.Don't buy personal houses like that ever. Don't buy big assets until you have tens of millions liquid.

I have enough money to buy a house. So should I buy with that money or take a home loan?

Buying a house in cash or with the help of a loan have their own advantages. It totally depends on what you want. I am trying to highlight advantages of both so that you can take your own decision.Advantages of buying House in Cash:No Interest - You will not have to pay interest rate. Home loan interest rates are higher than any savings interest rate. So, unless you want to invest in equity investments, you will be better off paying for your house in full.Peace of Mind - You will worry about your home loan all the time since your house will be all paid up in cash.Advantages of buying with Home Loan:Buy bigger house - You can buy a bigger house with the help of a home loan as your budget will automatically increase with more money at your disposal. Leveraged Investment - Home loan is the best way to invest by borrowing money as home loan is the cheapest form of debt. Since, real estate prices increase over time, your Return on your Cash will be quite high with the help of home loan leverage.Tax Benefits - You can claim tax deductions under section 80 C (Principal Repayment) and under section 24 (Interest Repayment). Check this Home Loan Tax Benefit Guide to know how you can take tax benefit for home loan under various scenarios.These are the major advantages of both. Now, you can decide yourself as to what is more important to you - peace of mind of owning the house upfront or the benefits of a leveraged investment along with home loan tax benefits.

Where do YouTubers get enough money to buy a big house with a pool in LA?

Most of them don't. Here's a great article from Gaby Dunn (of BuzzFeed fame et al) on The sad economics of being broke and famous on Youtube.

How do I earn enough money to buy a house without a mortgage and move out of my parents’ house in another year?

A few assumptions I will make: your parents are not currently charging you rent or utilities and you don't care where the house you buy without a mortgage is, as long as it is in the US. I'm assuming you're in the US, as that is where I am.That you own your car without a loan.If you get an entry level jobs paying $10/hour and averaging 35 hours per week, you'll make $1400/month before taxes.Call it $1200 after taxes. Say $100 for a young person to have minimal health insurance. $100 for a phone plan. $100 for gas and car insurance. $300 for food. This is only $10/day, you're gonna have to pack lunches and eat at home. No meals out. $100 for other miscellaneous expenses I'm forgetting.Leaves you with $500/month.Save all of that, and you'll have $6000 at the end of the year.Here are some houses you can buy for $6000.Liveable, but gonna need some work. No back taxes, but be prepared to pay them moving forward every year. 3302 Collingwood St, Detroit, MI 48206 - 3 beds/1.5 baths12251 Glenfield St, Detroit, MI 48213 - 3 beds/1 bathI'm sure there are others in small towns throughout the us too.Just be creative in where you look.In real estate, it is all location, location, location.

If you don’t make enough money to buy a house outright, and you view the terms of all the home mortgages available to you as basically unfair, do you have any other reasonably practical options to become a homeowner?

Well, I was OK with the question until I came to the part that “all the home mortgages [are] basically unfair.” Guess what? They’re not meant to be fair. They’re meant to favor the lender. If you need the money, the terms and conditions will reward the lender.Yes, there are other options to becoming a homeowner, but as you go through life you’re going to run into a lot of things that are “unfair.” Credit cards, for instance. The process of buying and likely financing a car. You’re going to run into a lot of brick walls if you reject options that you consider “unfair.”Still, yes, there are plenty of other options. Most involve some variation of owner financing since, with owner financing, you can negotiate your own terms and conditions. These include:Traditional owner financing. You’ll probably put some money down, and negotiate terms (interest rate, length of repayment) with the seller.Land contract. In this case, you don’t immediately get the deed. You make a set amount of payments. Then the deed is transferred to your name.Lease-option or lease-purchase. [Tip: These can be very unfair to the tenant-buyer. Have any reviewed by your lawyer before signing on the dotted line.]Acquire the property “subject to.” Mortgages aren’t assumable anymore, but this is very similar. You may pay the seller a small amount. You also promise the seller that you’ll make his required mortgage payment every month,and that’s what you do. You’re not assuming the loan, but you are paying it for the seller. In return for this, the seller deeds the property to you.Certain religions consider the payment of interest immoral. Those religions have worked out methods allowing their members to purchase houses without going through the typical process and paying interest to a bank.Those are just a few ways. But, again, understand that not everything is “fair.”

What is the least you should make to afford a house worth 2 million?

A good general rule of thumb is to spend no more than 3X your gross income on a house. Therefore, if you want to buy a $2 million house and have a $400,000 downpayment and a $100,000 cash buffer in case you lose your job, then you should make around $667,000 a year.When you own a $2 million house, EVERYTHING costs more. We’re talking $24,000+ a year in property taxes, higher heating bills, higher home insurance, higher maintenance costs, higher cleaning costs, higher landscaping costs, higher mortgage, and so on.I should know, because I bought a house in San Francisco for $1,525,000 back in 2005 and sold it for $2,740,000 in 2017. The house was too big and costly for just my wife and I at the time. It felt like a waste to have several unused bedrooms and bathrooms. Further, there was no way we’d be willing to pay $8,800 a month to rent the house, so we rented it out for three years.We now live in a a smaller house that’s 40% cheaper and we love it. It feels awesome to fully utilize the house, especially since we are stay at home parents to a baby boy.Below is a sample budget for a family of three living in an expensive city earning $300,000 a year. Their mortgage is only $900,000 versus a $1,600,000 mortgage for a $2,000,000 house after putting 20% down. I would call this a pretty middle class lifestyle, despite the six figure income. In other words, $300,000 is NOT enough to comfortably afford a $2,000,000 house.I highly recommend you DO NOT overextend yourself in this real estate market. House prices in many cities have far surpassed their previous peaks with valuations in coastal cities trading at egregious levels. I sold my SF rental house for 30X annual gross rent, for example. I’d much rather “rent luxury and buy utility” for higher cash flow generation.The house I sold for $2,740,000 was only generating $60,000 after all costs. Meanwhile, my $500,000 investment in the heartland through real estate crowdfunding has the potential to generate the same amount of income but with $2,240,000 less exposure!Non-coastal city real estate is trading at much cheaper valuations with net rental yields that are 4–5X higher. In the past, we couldn’t access these types of opportunities easily. Thanks to technology, now we can.There are no investment guarantees of course, but at some point, valuations do matter. Pay attention because rents are down from their all-time highs in many cities, but prices are still elevated.Best of luck!Sam, Financial Samurai

How do I make enough money to buy a nice house within five years as a 22-year-old software engineer in the Bay Area, other than joining a pre-IPO startup and making $1 million for a down payment in an IPO?

Here is how you do it. I am going to give you a realistic answer, one that does not require you hitting the IPO lottery, moving to Oklahoma or having rich parents.Firstly, you have to have realistic expectations. 27 years old don't really buy "nice" houses, not in the most desirable place to live in the country. They buy starter homes and them move up to nice homes, or save for a bit longer before buying their first home. I bought my first home in Noe Valley when I was 33 (six years after I graduated). You can do it too, if you save diligently and are frugal.Now, cut your expenses as much as possible. Live in a room in a shared house. In San Francisco, you can do this for $1000/mo. Sell your car and ride a bike or get a Muni pass instead.You will save $5000/yr or more this way. Cook your own meals, at least during the week. You should be able to easily live on $30,000/yr.You need to save at least 25% of your gross income. It is not really that hard if you are making good money. Just live like a college student, this should be easy for you now. If you start getting used to spending money, it will be harder to cut back. In five years you will have $100k-$150k saved.Step three is to find someone else with a job to go in with you. This is probably a wife or girlfriend. Unfortunately, for those of us born without rich parents, this is the only way to afford buying your own place here. She should be a saver too and have her own $100k saved up.With $250k as down payment and a combined income in the $200k/yr range, you should be able to afford a $1M home, which is either a small home in a nice area or a larger home in a somewhat less desirable area. You will have to make a trade off between size, quality, neighborhood and commute. You do have compromise, even at this price range. I personally would recommend a place in a good neighborhood near where jobs are.I know it seems impossible now, but what is the downside? You have saved up a $1/4M? It might take an extra year or two depending on the economy and housing market, but you also might get lucky and have a big cash payment saved just in time for a downturn.